Listing Agreement: Breaking Up Is Hard To Do

United Country Midwest Lifestyle Properties puts our clients first. Our real estate agents work hard to earn your trust through our proven marketing program to give you the very best realtor service around. 

During our initial consultation, we will review the terms of our Traditional Listing agreement with you. The Traditional Listing agreement is a legally binding contract that states how long the listing will run and what services the realtor will provide along with their realtor responsibilities.

Should either party feel that certain conditions have not been met, the seller or the realtor many have the legal ability to terminate the agreement. While termination is an option, we suggest misunderstandings can be easily resolved. However, sometimes termination is best for both parties. 

What is a listing agreement?

The listing agreement is a legally binding contract between the seller and the real estate agent representing them in the sale of their home. There are several types of listing agreements. For our purpose today, we will focus on the most common agreement-the Exclusive Right To Sell listing agreement.

The Exclusive Right to Sell agreement contains:

1. Ownership validation
2. Listing duration/Expiration
3. Commission amount
4. Cancelation Clause/ Disputes
5. Realtor Responsibilities

Before any agreement is signed, the real estate agent will establish your legal ownership of the home, allowing you to legally sell your home and transfer the title.

The listing duration is the time set for the listing to be valid. Most realtors list your home for three months, but this can change due to the realtor and the current market. Once the listing duration has expired, you can relist with your current realtor or choose another agent.

BE AWARE should your contract expire before your house sells; the realtor will have kept a list of the potential buyers. Should one of those potential buyers purchase your home after the listing agreement expires and within a specific period, that realtor is due the commission for the home selling! These are called carryover or holdover clauses.

In an Exclusive Right To Sell listing agreement, the listing agent has the exclusive right to earn the commission. Realtors earn a commission by bringing a buyer, either directly or through another real estate agent. It is an exclusive contract with your real estate agent that prevents you from working with another agent during the term.

Commission amounts vary between 5 and 6 percent. This commission is generally split between the seller’s real estate agent and the buyer’s real estate agent.

Stuck with you?

Most Listing Agreements contain a cancellation clause. This clause will list any penalties you may or may not face for terminating the contract before the realtor sells your home. In the agreement, the realtor will have provided you with a list of responsibilities they will take in the marketing of your home. For example:

1. Professional photography
2. Arial Drone photography
3. Real estate listing/ MLS
4. Open houses and Showings
5. Detailed marketing plan

It is within those realtor’s responsibilities should the realtor be woefully neglectful; the sellers could use those as a way to terminate the agreement.

Let’s work it out

If you find yourself considering terminating your Listing Agreement, we would ask you to consider a few options. The first option would be to speak face-to-face with your realtor. Politely address any concerns you may have and be willing to listen to what the realtor has to say. Sometimes issues are just simple misunderstandings that are easily remedied.

If you feel that conversation did not relieve the problem, then the second option would be to call the realtor’s broker. A broker oversees the realtor’s purchase contracts, and an unhappy client affects the broker’s bottom line.

Lastly, if you feel the issue has not been resolved by speaking to the broker, you could hire a lawyer to speak to both of them. Overall, your best option may be to wait till the contract listing agreement expires, allowing everyone to move on.

United Country Midwest Lifestyle Properties real estate agents are honored to have the privilege of selling your home and property. We take the time to listen to our clients’ needs and walk them through the Traditional Listing Agreement, answering any questions they may have.  United Country Midwest Lifestyle agents provide our clients with an excellent marketing plan, ensuring the successful selling of your home or property.

United Country Midwest Lifestyle Properties agents are invested in you, the client. Your lifestyle. Our Mission.